During year 2002, Father Ltd made sales of inventory to Subsidiary Ltd for on- sale to external parties. The inventory had originally cost Father Ltd...

During year 2002, Father Ltd made sales of inventory to Subsidiary Ltd for on- sale to external parties. The inventory had originally cost Father Ltd $35,000. At the year end, Subsidiary Ltd still had a quarter of the inventory on hand. On-hand inventory was expected to be sold in the following financial period. There were no other intro-group transactions between Father Ltd and Subsidiary Ltd for year ended 30 June 2002.